March 1914, No. 193 | Canadian Railway and Marine World (Toronto) | Page 136, col. 2 |
Sale of Grand Valley Railway and Brantford Street Railway
At a meeting of bondholders of the G.V.R., held in Toronto, Feb. 13, offers for the purchase of the company's property were considered. E. B. Stockdale, the Receiver, presided, and J. A. Worrell, K.C., reported that the Special Committee had received two offers for the property. One was from W. P Kellett, General Manager of the Lake Erie and Northern Ry. at a total price of $82,600, and on e from the city of Brantford at a total price of $96,000. The committee recommended acceptance of the latter offer, and the bondholders decided to accept it and agreed to apply to the courts to ratify the sale, which includes the Brantford St. Ry., and the Grand Valley Ry. from Brantford to Galt via Paris. The purchaser undertakes to redeem the bonds on the B.S.Ry., held by the Canadian General Electric Co., amounting to $125,000. When the G.V.Ry. took over the B.S.Ry. it issued $59,000 of 1st mortgage bonds, and $1,700,000 of 2nd mortgage bonds. These will now rank for dividend.
The matter came before the court at Toronto, Feb. 19, when it was ordered that the terms of the agreement, with the consent of the parties concerned, be submitted at an early date, when, probably the court's consent will be give to the transfer.
The contract will have to be ratified by the ratepayers of Brantford. It is expected that the city council will at once put the city lines in good shape, and will operate them, as well as the section of the G.V.Ry. as far as Paris, abandoning the line from Paris to Galt, which has been a source of loss ever since it was built.
The adjourned cases brought by the city against the company came before the Court of Appeal, Feb. 16, but under the circumstances were adjourned. If the sale is ratified by Brantford ratepayers and the courts, all the actions will be abandoned with the exception of one by the second mortgage bondholders against the directors of the G.V.Ry.
Railways: B.St.Ry., G.V.Ry., L.E. & N.Ry.